NORTHWEST LOG PRICES RECOVER THANKS TO CHINA AND PULP AND PAPER
Chinese demand for logs and healthy pulp and paper demand have led to a turnaround in Northwest log prices, tightening margins for saw and plywood mills. Prices have eclipsed the levels set May 2010, when a brief spike in lumber prices drove Douglas fir domestic logs over $525/MBF for the first time in two years reports Forest2Mill News.In January 2011, domestic Doug fir eclipsed $550/MBF in Western Oregon and Washington, a response to firming lumber prices and vigorous competition from export log purchases. Whitewood, more than any other species, has attracted the attention of Chinese buyers. Average hemlock export log prices rose beyond the $550/MBF level in January, a 30 percent increase in twelve months. Just a short time ago, hem-fir was difficult to sell. Eager to secure wood to build their growing economy, however, Chinese buyers have picked up the slack.